Huaneng Rizhao 1,200-Megawatt Power Plant Phase II Receives Approval from NDRC

---

Researched by Industrial Info Resources (Sugar Land, Texas). Phase II of the Huaneng Rizhao Power Plant’s 1,200-megawatt (MW) expansion project in eastern China’s Shandong province received official approval from the National Development and Reform Commission (NDRC). The announcement was made on April 13, 2007 by Huaneng Power International, Incorporated (HPI), a subsidiary of China Huaneng Corporation (NYSE:HNP). China Huaneng Corporation is one of the top five power producers in China, with total installed capacity reaching 57,000 MW at the end of 2006.

According to the Written Reply Regarding the Approval of Huaneng Rizhao Power Plant Phase II Project issued by the NDRC, the company will build two 600 MW supercritical coal-fired generation units in Rizhao, Shandong Province. The project use a seawater desulfurization device, highly efficient static electric dust remover and an online continuous flue gas monitor in-phase. The estimated total investment will be $572 million. HPI will fund 20% of the investment and the rest will come from bank loans, it said.

The project is one of the three key projects in Rizhao. The power load in Rizhao is swiftly increasing following steady, fast and healthy economic development. The Rizhao grid started to suffer from power shortages during the eleventh five-year plan (2006-2010). The Rizhao Power Plant is the only large-scale power source in the south of the 500 kV backbone grid in Shandong. The construction of the Rizhao Power Plant’s phase II project will reinforce the 500 kV ring in the south of the Shandong grid, which is good for the safety and stability of the grid. It will also play an important role in securing power supply for the increasing demand in Rizhao as well as the Shangdong province.

Chinese power producers are increasing capacity and output to supply the world's fastest growing major economy. The nation's electricity consumption in the first quarter has raised 14.92%, according to a recent report issued by China Association of Electric Power Enterprises.

Industrial Info Resources (IIR) provides marketing communication services ranging from industrial database solutions to market forecasting, custom analytics, and specialty promotions that support high-level image campaigns.